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Circular 17/2016/tt-Nhnn: Regulating The Activities Of Commercial Banks, Foreign Bank Branches

Original Language Title: Thông tư 17/2016/TT-NHNN: Quy định về hoạt động môi giới tiền tệ của ngân hàng thương mại, chi nhánh ngân hàng nước ngoài

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The CIRCULAR regulates monetary brokerage activities of commercial banks, foreign bank branches _ _ _ _ _ _ _ _ _ _ _ pursuant to the law the State Bank of Vietnam the number 46/2010/QH12 16 June 2010;
Pursuant to the law on credit institutions the number 47/2010/QH12 16 June 2010;
Pursuant to Decree No. 154/2013/ND-CP DATED 11 November 2013 of government functions, tasks, powers and structure of the State Bank of Vietnam (hereinafter the Bank);
At the suggestion of the Director of monetary policy;
The Governor of the State Bank issued a circular regulating the activities of commercial banks, foreign bank branches.
Chapter I GENERAL PROVISIONS article 1. Scope this circular regulates monetary brokerage activities of commercial banks, foreign bank branches for customers.
Article 2. Application object 1. Currency broker parties (hereafter referred to as brokerage parties) is a commercial bank, foreign bank branch has been approved by the State Bank of monetary brokerage activities in license and operation of commercial bank or license the foreign bank branches by the Bank to the State level.
2. Customers are currency brokers (hereinafter called customer) as credit institutions, branches of foreign banks established and functioning according to the law on credit institutions and other financial institutions.
Article 3. Explanation of terms In this circular, the terms below are interpreted as follows: 1. Currency brokers are mediating to broker a fee to arrange implementation of banking activities and other business activities as defined in article 5 of this circular between credit institutions , foreign bank branches, other financial organizations.
2. other financial institutions financial institutions is determined by the provisions of the law on prevention of money laundering.
3. currency broker Fee is the amount that customers pay to the broker to be providing brokerage services.
Article 4. The principle of currency brokers 1. Commercial Bank, foreign bank branch must promulgate regulations on the operation of the internal currency brokers match provisions of this circular and the provisions of the relevant legislation, which should include at a minimum the following: processes, procedures for performing currency brokers; the scope of the responsibilities and powers of the person related to the broker of currency activity; risk management for monetary brokerage activities.
Within 10 days from the date issued, modified, supplemented or replaced the internal regulations on the operations of currency brokers, commercial banks, foreign bank branches are sent directly or by post to the State Bank (banking supervision, inspection) internal regulations to be issued , modify, supplement or replace.
2. The implementation of currency brokers to comply with the provisions of this circular and the provisions of other relevant laws.
3. Have at least one client side are currency brokers are credit institutions, branches of foreign banks established and functioning according to the law on credit institutions.
4. Ensure honesty, objectivity, for the benefit of customers: a) information on the transaction currency brokers and other information are provided allowing clients to be fully reflected, exactly;
b) not provided false information or to interfere in any form in order to falsify information leading to inaccurate assessment clients on transactions are currency brokers and/or affect the legitimate interests of the customer;
5. Does not provide information related to customer and transaction currency brokers to third parties, unless otherwise required by competent State agencies as prescribed by law or the consent of the customer.
6. Commercial Bank, foreign bank branch cannot be simultaneously both the broker side, just a party to perform transactions are currency brokers with customers.
Chapter II SPECIFIC PROVISIONS article 5. Currency broker range commercial bank, foreign bank branch are supplying monetary brokerage service for the banking activities and other business activities as defined in the credit institutions Act and the instructions of the State Bank.
Article 6. The method of implementing currency brokers brokerage Side could perform activities through monetary transactions directly or indirectly through the network of computers and/or telephone with the customer, or otherwise by the parties to the agreement consistent with the condition of the parties, in compliance with the provisions of the law.
Article 7. Contract currency brokers and broker side of the contracting customer currency brokers on the basis of the agreement of the parties, in accordance with the provisions of this circular and the provisions of the relevant laws, including the following principal contents: 1. Information on the broker side, customers.
2. The method of implementing currency brokers.
3. currency brokerage Fees and other costs involved (if any).
4. Payment methods, billing period.
5. Rights, obligations of the parties.
6. Liability due to breach of contract.
7. Regulations regarding the handling of disputes.
8. Validity of the contract.
9. other agreements consistent with the provisions of this circular and the provisions of relevant laws.
Article 8. Currency broker fees

Currency broker fees and other related expenses due to brokerage clients and parties to the agreement.
Article 9. Brokerage Party records are created and stored active profile currency brokers include: 1. The contract currency brokers.
2. Other documents related to the implementation of the transaction currency brokers.
Chapter III ORGANIZATION of the IMPLEMENTATION of article 10. Effect 1. This circular effect since August 22, 2016, replacing decision No 351/2004/QĐ-NHNN dated Jan. 7, 2004 by Governor of the State Bank on regulation of currency brokers.
2. for currency brokerage contracts signed prior to the time this circular effect, credit institutions, branches of foreign banks continue to make the content recorded in the contract currency broker in accordance with the law at the time of the contract currency brokers that , or the agreement modified, supplemented with suitable specified in this circular.
Article 11. Implementation 1. Inspection Agency, bank supervision is responsible for checking, inspection, monitoring the implementation of this circular and the handling of the case of violation by the authority.
2. Office, Director of monetary policy, the heads of the units of the State Bank, Director of the State Bank of India branch of the province, central cities, Chairman of the Board, the Chairman of the Board members and the ceo (Director) the commercial bank, foreign bank branch, is responsible for implementation of this circular.